Question: Decision Making # 1 - Sell or Process Further Joint Product Decision XYZ manufactures A and B from a joint process cost = $ 6

Decision Making #1-Sell or Process Further Joint Product Decision
XYZ manufactures A and B from a joint process cost = $60,000. Three thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $11,000 and then sold for $25. Nine thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $10,000 and later sold for $16.
Requirements:
Which products should be processed further or not? Why? Give the total dollar impact to income for each product based on your recommendation. I am not looking for per unit information, but how each decision will impact the company's income in total
Decision making #2-Use of limited resources-singe constraint
Bush Manufacturing has 25,000 labor hours available for producing M and N. Consider the following information:
Required labor per unit in hours for M is 2 and for N is 4
Maximum demand in units for M is 9,000 and for N is 6,000
Contribution Margin unit for M is $8 and for N is $15
Requirements:
What is the optimal product mix(how many M and N should be produced)?
You must provide the number of units to produce for each product at the optimal product mix and explain your answer along with supporting computations.

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